(April 30th, 2018) Ottawa- Today on tax deadline day, the Hotel Association of Canada is calling on the federal government to take real action to address tax avoidance in the digital space. Despite the rapid growth of out of country digital platforms like Airbnb, the government has not taken steps to collect the taxes they should.

“As Canadians across the country file their returns on tax day, it is important that we look at who isn’t paying taxes,” said Susie Grynol, President of the Hotel Association of Canada. “Online rental platforms operating in Canada, like Airbnb, do not currently collect or remit GST/HST, pay no corporate income taxes on their Canadian activity, and make it far too easy for those renting rooms on their platforms to do the same.”

Online rental platforms have an unfair advantage over other accommodation businesses, like hotels, who pay their taxes and play by the rules. And the real loss is felt by Canadians who end up paying more in taxes to cover the cost of Canada’s social programs.

“It is not acceptable that the federal government has not taken any meaningful action to modernize Canada’s tax laws to deal with the digital economy,” continued Grynol. “Further, it is equally unacceptable that Airbnb has not taken a more responsible approach to ensure tax compliance for their commercial hosts.”

Over the last two years, the commercial side of Airbnb’s business – those renting multi-unit entire homes – grew by 108%. These entire home rentals generated 83% of Airbnb’s revenues. Clearly these hosts are running a business through Airbnb, yet the federal government doesn’t require, nor does Airbnb provide, any tax information slips so that revenues can be tracked and tax calculated.

In the United States, there is a federal requirement to complete a 1099-K form in order to support tax compliance. In the European Union, Value-added taxes are applied and collected at the platform level on the total fee for the booking. These measures should be adopted in Canada in order to close current loopholes.

In 2016, guests of Canada’s legitimate hotel properties contributed an estimated $2.2 billion in consumer taxes and fees based on room revenues alone. If the same rates were to be applied to Airbnb’s revenues, the sector has the potential to contribute almost $100 million to the Canadian economy.

Governments have a responsibility to keep up with the emergence of the digital economy. “Other jurisdictions around the world have modernized their tax laws and Canada should follow suit,” concluded Grynol. “It’s unacceptable that the federal government allows online platforms to avoid tax, while good corporate citizens continue to support jobs, drive economic growth and fund governments.”

Why: April 30th is tax deadline day, and it is essential that the federal government take action to address tax avoidance in the digital economy.

What: Despite the rapid growth in the short-term rental industry, the federal government has not taken steps to collect the taxes they should. In 2016, guests of Canada’s legitimate hotel properties contributed an estimated $2.2 billion in consumer taxes & fees based on room revenues alone. If the same rates were to be applied to Airbnb’s revenues, the sector has the potential to contribute almost $100 million to the Canadian economy. Digital accommodation platforms, like Airbnb, do not currently collect or remit GST/HST, pay no corporate income taxes on their Canadian activity and make it too easy for those renting rooms on their platforms to do the same.

TORONTO, ON (April 24, 2018) – Realstar Hospitality announced the opening of a 67-room Motel 6 in Moncton, New Brunswick. Adding to the growing franchise system in Canada, the disciplined conversion expands the distribution network of Motel 6 and Studio 6, bringing the total to 32 locations countrywide.

“We’re excited to officially open our doors under the Motel 6 banner and be part of a well-recognized brand in Canada,” said Jude Anthonipillai, hotel owner & GM. “To better serve our guests, we completed a full modernization program featuring Motel 6’s award-winning contemporary room design and furnishings, inclusive of flat panel televisions, microfridges and free Wi-Fi access.”

With a convenient location right on the highway, Motel 6 - Moncton places travellers within easy reach of highly sought after attractions like Hopewell Rock, Magnetic Hill and the New Brunswick Casino. Located at 1905 Main Street West, the hotel is minutes to outdoor adventures, dining and entertainment. Guests will enjoy the convenience of an onsite bar, complimentary morning coffee in the lobby, free parking and pets are always welcome.

SHELTON, Conn. – April 23, 2018— Gerry Chase, president and COO of New Castle Hotels & Resorts, a leading third-party hotel management company, owner and developer, today announced that Didier Dolivet has been named general manager of the 395-room Westin Prince, Toronto.

A career hotelier, Dolivet most recently was the hotel manager for the Westin Harbour Castle, also in Toronto. Over a 30-year career, Dolivet has opened and rebranded numerous hotels under the most recognizable flags on three continents; ACCOR, Starwood, Hilton, and LeMeridien. Among many awards earned during his career, Dolivet most prizes the distinction of Chevalier in the Association Internationale des Maitres Conseils en Gastronomie Francaise, and the Spirit Award of the Greater Toronto Hotel Association. Under Dolivet’s leadership, his hotels have earned recognition as the Top 50 Best Employers in Canada for 5 consecutive years.

“Didier’s distinguished career, and extensive experience in the Toronto market made him an exceptional candidate, and ultimately the only choice for Westin Prince,” said Chase. “This is a legacy Westin property with a 40-year history of AAA 4-diamond status. Didier’s brand knowledge will ensure that status continues and his years leading hotels in Europe and Asia will positively impact the hotel’s diverse international clientele.”

“I look forward to leading this terrific team of hospitality professionals to enhance The Prince’s culture of service excellence,” said Dolivet. “Westin’s wellness branding resonates with our guests and bringing that to life in all that we do here is an opportunity I’m eager to take on.”

Sitting on 15 acres of rolling parkland, with an adjacent golf course, The Westin Prince is just minutes from downtown Toronto and within five miles of more than two dozen major corporations including Kraft, Sunoco, IBM, McDonald’s and SAP. The Toronto Zoo is a 15-minute drive. The Westin Prince Toronto caters to an international audience with authentic Japanese, Chinese and Persian restaurants, as well as a three-meal dining room serving locally-sourced regional favorites, Seasons at the Prince. With 30,000 square feet of meeting space, the Westin Prince can accommodate groups as large as 700 in both indoor and outdoor venues. The hotel features an outdoor heated pool, running trails, tennis courts and a fitness center with whirlpool.